Bitcoin block watch song Central and all related titles, logos and characters are trademarks of comedy partners. When Should You do a Patent Search?
As of late, liquidity in markets for cryptocurrencies like bitcoin is opening a new door for musicians and athletes to issue digital tokens in exchange for money. The tokens are validated by blockchain, a public ledger used for the authentication of digital currency transactions, and backed by copyright, trademark or other IP assets. The tokens are issued through smart contracts regulated in the U. IPWatchdog recently sat down with Aaron Swerdlow, and Banu Naraghi, attorneys at Gerard Fox Law, to discuss why digital currency offers a new way to scrutinize IP. According to Naraghi, blockchain specifically is critical to the securitization of IP because it guarantees the validity of a transaction by recording the transaction on a main centralized register as well as a connected publicly distributed system of registers. The fact that data is embedded within a public network and updated with each transaction promotes transparency and prevents modification or corruption. When IP rights holders register their works to a blockchain, the rights holders can ultimately end up with concrete evidence of ownership, which is free from tampering, because once a work has been registered to a blockchain, that information cannot ever be lost or changed.
Today, digital currencies give Internet users the ability to create value and authenticate digital information and can therefore provide artists with a new revenue stream and distribution model. Blockchain’s distributed ledgers allow for the creation of peer-to-peer music distribution systems which enable artists to sell songs and licenses directly to their customers. Then, each payment can be automatically split on the blockchain and set to the appropriate rights holders based on their percentage share of the work. The most prominent athletes advocating for blockchain-based securities are Floyd Mayweather and Mark Cuban, per Swerdlow. Mayweather has the distinction of being the first paid celebrity digital currency sports endorser, helping Stox. Cuban is a financial backer of U. These days, liquidity is facilitating entertainers and athletes to be able to go directly to fans, consumers, and everyday investors to raise capital in the form of digital tokens.
Many fans have sentimental connections to their favorite celebrities, which can lead to an overvaluation of an opportunity to be associated with or support, personally, a celebrity or athlete. The appeal of smart contracts make business decisions and delegate tasks to other smart contracts, means smart contracts are likely here to stay, according to Swerdlow. And it is also clear that regularity clarity is necessary. Arizona may lead the way, having earlier this year recognized blockchain signatures and smart contracts as having full legal effect, validity and enforceability. New Hampshire appears to taking a different approach by excusing digital currencies from money transmission regulations. This early in the evolution of the industry, so it is likely that federal regulators will closely monitor to see if the technology is truly as secure and reliable as many proponents claim, while studying the impact and effects of state regulations on cryptocurrencies and digital tokens, per Swerdlow.
The legal gray area that this currency occupies has caused companies to avoid U. Ciccatelli is a Freelance Journalist for IPWatchdog, where she covers intellectual property. Communications and Journalism from Central Connecticut State University in 2010. Disclaimer: The pages, articles and comments on IPWatchdog.
The articles published express the personal opinion and views of the author and should not be attributed to the author’s employer, clients or the sponsors of IPWatchdog. There are currently 2 Comments comments. I wonder whether block chain could be used for the USPTO Registry of patents and patent applications. Hi Joachim, I’m positive that Blockchain technology is ideal for the registry of patents and patent applications as in the USPTO. Also for het registry of ships and diplomas.
How Google and Big Tech Killed the U. Industry Reaction to Supreme Court Decision in Oil States v. Inventorship 101: Who are Inventors and Joint Inventors? Should I File a Patent Application Before Licensing the Invention? Can cake designs result in intellectual property protection?
Today IPWatchdog is recognized as one of the leading sources for news and information in the patent and innovation industries. Cockygate’ Trademark Row Causes Heartbreak in U. Bitcoin Miners Are Flocking to Oregon for Cheap Electricity. Should We Give Them a Boost? The arrival of cryptocurrency miners in The Dalles offers a strange opportunity for the state—and a big environmental threat. Terrence Thurber says he plans to double his cryptocurrency mine’s electricity use within the next year, to draw 6 megawatts every hour.
Deep in the Columbia River Gorge is a parking lot that never freezes. The source of this artificial summer in The Dalles, a town of 13,000 people 85 miles east of Portland where February temperatures can dip to 16 degrees, is a nearby warehouse, a cream and green concrete building with no windows and no signs. The reason for this banana belt? Air pumped from exhaust vents in the warehouse bathe the parking lot with a warm sauna-like breeze—heat coming from the 2,750 computers that hum inside. Two thousand, seven hundred fifty computers, each the size of a shoe box. This is Terrence Thurber’s cryptocurrency mine. Thurber, a boyish, 33-year-old college dropout with a pompadour of blond hair, a perpetual five o’ clock shadow and a gambling habit that sent him jetting off to Vegas this week, moved to The Dalles from Costa Rica three years ago.